Dairy Alternatives Market by Product, Source, Distribution Channel, End-Use

List of Tables

[187 Pages Report] The Dairy Alternatives Market size was estimated at USD 27.66 billion in 2023 and expected to reach USD 29.51 billion in 2024, at a CAGR 6.41% to reach USD 42.76 billion by 2030.

The dairy alternatives market encompasses a wide range of non-dairy products that are derived from plant-based sources and serve as substitutes for conventional dairy-based items. These products include milk, cheese, yogurt, ice cream, and other related food items made from sources such as soy, almond, coconut, oats, rice, and hemp. The primary focus is on offering consumers nutritional benefits similar to traditional dairy products while eliminating lactose and accommodating various dietary preferences such as veganism or specific allergies or intolerances. Dairy alternatives are used across multiple industries, including food & beverage manufacturing (confectionery, bakery), food service (restaurants, cafes), and retail sectors (supermarkets & grocery stores). Increasing preference for plant-based diets due to health reasons and sustainability issues associated with conventional farming practices have driven the demand for dairy-free alternatives. However, higher prices compared to conventional dairy products and cases of product recalls pose hurdles to the adoption of dairy-free alternatives. Additionally, concerns regarding nutritional adequacy and stringent regulations pertaining to the nutritional content of dairy-free products adversely affect the growth of the industry. Major companies are developing products with enhanced nutritional profiles to tackle these concerns. These products can compete with traditional dairy products in taste and health benefits. Furthermore, expanding distribution channels through online platforms has expanded the accessibility of dairy-based alternatives.

KEY MARKET STATISTICS
Base Year [2023]	USD 27.66 billion
Estimated Year [2024]	USD 29.51 billion
Forecast Year [2030]	USD 42.76 billion
CAGR (%)	6.41%

Product: Increasing demand for plant-based milk among health conscious consumers

Dairy-free milk alternatives are typically derived from plants such as soy, almond, oat, coconut, rice, and hemp. Each type offers unique nutritional profiles and flavors that cater to different consumer preferences. Dairy-free yogurt options have expanded over the years. Yogurts are now produced using almond, oat, cashew, and pili nut-based formulations. In addition to offering various flavors (vanilla, strawberry) similar to conventional yogurt selections, some dairy-free yogurts also contain live probiotic cultures known for their digestive health benefits. Dairy-free cheese options have evolved significantly in variety and quality. Dairy-free cheese is made from ingredients such as nuts (cashews, almonds), tapioca starch, or oil blends (coconut oil) and includes added nutritional yeast, which imparts significant health benefits. Dairy-free butter substitutes are primarily produced from oil blends that mimic the taste and texture of conventional butter. Commonly used oils include coconut, palm, and soybean. These alternatives are available in salted and unsalted varieties and may contain additional flavorings or plant-based additives for improved functionality.

Source: Popularity of various plant-based sources used in dairy alternatives and dairy-free food items

Almonds are rich in vitamins E and D and minerals such as calcium and iron. Milk produced using almonds has become an increasingly popular choice among consumers seeking lactose-free and vegan options. Coconut contains vital nutrients such as medium-chain triglycerides (MCTs), linked to various health benefits such as improved cognitive function. Coconut milk and coconut-based yogurt are consumed by lactose-intolerant individuals. Milk produced from rice offers a hypoallergenic option for individuals allergic to nuts or soy products while maintaining lower calorie counts compared to other dairy alternatives. Soy offers a high-quality protein source similar to cow milk and contains essential nutrients, including omega-3 fatty acids, vitamins D, iron, and calcium. Its neutral flavor profile and smooth texture make it versatile for use in a variety of recipes, such as savory sauces, creamy dips, or beverages. Oat provides a good amount of protein alongside essential nutrients such as soluble fiber (beta-glucan), which promotes heart health by lowering cholesterol levels. The mild sweetness and thick consistency of oat milk make it a viable choice for dairy-free coffee drinks or baking recipes.

Distribution channel: Ease of availability of various dairy-free products through online distribution channels

The online distribution channel witnessed significant growth in recent years owing to the convenience of shopping from home and easy access to a broader range of products. Online channels offer a diverse range of products from numerous brands, allowing customers to easily browse through various categories such as almond milk, oat milk, soy milk, coconut yogurt, or dairy-free cheeses. The presence of detailed product descriptions and user reviews assists consumers in making informed decisions regarding their purchases. Supermarkets, hypermarkets, pharmacies, and convenience stores have swiftly adapted to the growing inclination toward vegan and vegetarian lifestyles by expanding their product offerings and implementing strategies to support the sales of plant-based milk substitutes and other dairy alternatives. Offline convenience stores play a crucial role in the distribution of dairy alternatives. These small-scale retail outlets are strategically located to cater to on-the-go consumers with limited shopping time. They are found near residential areas, transport hubs, or office complexes and offer an assortment of daily essentials and ready-to-eat products. Health food stores provide nutritious organic products catering to various dietary preferences and restrictions. These niche outlets offer an ideal platform for distributing dairy alternatives, with their targeted customer base that values healthy eating habits. Pharmacies have expanded their product offerings beyond medication to accommodate an extensive range of wellness-related goods, including dietary supplements and functional foods. Supermarkets and hypermarkets significantly contribute to the retail landscape as major distribution channels for dairy alternatives. These large-scale outlets provide an extensive variety of food items catering to diverse consumer preferences. Furthermore, a primary strategy adopted by offline distribution channels is the allocation of dedicated shelf space for dairy-free alternatives.

End-Use: Increasing consumption of plant based beverages, as sustainable options

Beverages comprise the largest portion of the dairy alternatives market, with a growing consumer base seeking plant-based options for health or environmental reasons. These beverages include milk substitutes derived from soy, almond, coconut, rice, oats, and peas. The food segment includes dairy-free yogurt, cheese alternatives, ice creams, and culinary applications such as sauces and spreads. In conclusion, the dairy alternatives market has witnessed significant growth across beverage and food segments. Manufacturers consistently innovate to offer improved taste profiles and sustainable options for consumers seeking plant-based choices driven by health considerations or environmental concerns. Dietary supplements using dairy alternatives are gaining traction among health-conscious consumers who seek nutrient-dense options without animal-derived ingredients. These supplements can be in the form of protein powders, ready-to-drink shakes or meal replacements targeting specific needs, such as weight management or muscle growth. Pea protein and brown rice protein are popular choices in this category.

Regional Insights

The consumption of dairy-free products in the Americas has been steadily increasing owing to several crucial factors, including consumer demand for dairy alternatives and a reshaped food industry landscape. An increased focus on health and ethical considerations related to animal welfare has driven the rising consumption of dairy-free food products. Additionally, the Americas is characterized by an expanding range of innovative dairy-free product offerings. In Europe, a strong focus on sustainability and ethical consumerism has led to increased demand for dairy alternatives. There is a growing inclination toward veganism and vegetarianism in Europe driven by ethical reasons concerning animal welfare. Furthermore, countries such as Sweden and Norway have introduced dietary guidelines that support reduced animal product consumption. China, Japan, and India represent significant markets for dairy alternatives within the Asia-Pacific region due to their large populations and shifting consumer preferences toward healthier lifestyles. Japanese consumers are increasingly opting for non-dairy milk due to health concerns related to milk allergy cases. In India, the dairy alternatives market is driven by a large vegetarian population and growing consumer awareness regarding lactose intolerance.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Dairy Alternatives Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Dairy Alternatives Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Dairy Alternatives Market, highlighting leading vendors and their innovative profiles. These include Adisoy Foods & Beverages Pvt. Ltd., Archer Daniels Midland Company, Armored Fresh, Axiom Foods, Inc., Califia Farms, LLC, Cargill, Incorporated, Dancing Cow Foods Private Limited, Danone S.A., Drupe Foods India Pvt Ltd., DUG by Veg of Lund, Earth's Own Food Company Inc. by Agrifoods International Cooperative Ltd., Eden Foods, Inc., Good Karma Foods, Inc., GT's Living Foods LLC, Kerry Group PLC, Lipoid Kosmetik AG, Maeil Dairies Co., Ltd., Milkadamia, Nestle S.A., Oddlygood Global Oy by Valio Ltd., Pacific Foods by Campbell Soup Company, Planet Oat by HP Hood LLC, Plant Veda Foods Ltd., Purefoods by Rollins International Pvt. Ltd., Ripple Foods PBC., Sain Milks, Sanitarium Health Food Company, SunOpta, Inc., The Hain Celestial Group, Inc., TheNotCompany Inc., and Upfield B.V..

Market Segmentation & Coverage

This research report categorizes the Dairy Alternatives Market to forecast the revenues and analyze trends in each of the following sub-markets:

Product
- Butter
- Cheese
- Milk
- Yogurt

Source
- Almond
- Coconut
- Oat
- Rice
- Soy

Distribution Channel
- Offline
  - Convenience Stores
  - Health Food Stores
  - Pharmacies
  - Supermarkets & Hypermarkets

Online

End-Use
- Beverages
- Dietary Supplements
- Food

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Dairy Alternatives Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Dairy Alternatives Market?

3. What are the technology trends and regulatory frameworks in the Dairy Alternatives Market?

4. What is the market share of the leading vendors in the Dairy Alternatives Market?

5. Which modes and strategic moves are suitable for entering the Dairy Alternatives Market?

Product Code: MRR-4348D129F9B6

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing consumer preference for a vegan diet and adoption of dairy alternatives by food service outlets
  - 5.1.1.2. Increasing number of lactose-intolerance and dairy-allergic consumers
- 5.1.2. Restraints
  - 5.1.2.1. High cost associated with production of dairy alternatives
- 5.1.3. Opportunities
  - 5.1.3.1. Introduction of new flavor & variety of dairy alternatives
  - 5.1.3.2. Rising availability in online platforms and changing labelling regulations
- 5.1.4. Challenges
  - 5.1.4.1. Product recalls due to contamination coupled with problems of added sugar in dairy alternatives
5.2. Market Segmentation Analysis
- 5.2.1. Product: Increasing demand for plant-based milk among health conscious consumers
- 5.2.2. Source: Popularity of various plant-based sources used in dairy alternatives and dairy-free food items
- 5.2.3. Distribution channel: Ease of availability of various dairy-free products through online distribution channels
- 5.2.4. End-Use: Increasing consumption of plant based beverages, as sustainable options
5.3. Market Trend Analysis
- 5.3.1. Increasing preference of vegan diets and animal welfare programs in the Americas
- 5.3.2. Ongoing advancement using unique sources to produce dairy alternatives in the APAC region
- 5.3.3. Robust demand coupled with government support driving production of dairy alternatives in the EMEA
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Dairy Alternatives Market, by Product

6.1. Introduction
6.2. Butter
6.3. Cheese
6.4. Milk
6.5. Yogurt

7. Dairy Alternatives Market, by Source

7.1. Introduction
7.2. Almond
7.3. Coconut
7.4. Oat
7.5. Rice
7.6. Soy

8. Dairy Alternatives Market, by Distribution Channel

8.1. Introduction
8.2. Offline
8.3. Online

9. Dairy Alternatives Market, by End-Use

9.1. Introduction
9.2. Beverages
9.3. Dietary Supplements
9.4. Food

10. Americas Dairy Alternatives Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Dairy Alternatives Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Dairy Alternatives Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Oddlygood acquires Planti Takes the lead in two dairy alternative categories in Sweden and Finland
- 13.3.2. Kerry Group Partners with Unigrain on Dairy Alternatives
- 13.3.3. Eden Brew Alternative Milk Startup Attracts USD 25 million In Investments To Bring Synthetic Dairy To Market
- 13.3.4. Ripple Foods Launches Plant-Based Milk With no Added Sugars
- 13.3.5. Veg of Lund signs letter of intent to sell its DUG potato based dairy alternatives in China
- 13.3.6. South Korea's Armored Fresh Finding Flavour in the U.S. Plant-based Market
- 13.3.7. Plant Veda Finishes Acquisition of Nora's Non-Dairy LTD
- 13.3.8. Changes continue in Danone's dairy, plant-based business
- 13.3.9. SunOpta Opens New USD 125 Million Plant-Based Beverage Manufacturing Facility in Texas
- 13.3.10. Soul Origin Partners With Australian-Owned the Alternative Dairy Co
- 13.3.11. Califia Farms introduces two new dairy alternatives
- 13.3.12. ADM and New Culture Announce Strategic Partnership to Scale up Alternative Dairy Products
- 13.3.13. Abbot Kinney's launches organic plant-based drinks in UK

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio